Flee, you fools! – Companies linked to the sector of Bitcoin (BTC) and cryptocurrencies end up as trapped in the USA. Failing to be favorable to them, the country was relatively conciliatory with digital assets until last year. So crypto-companies got there installed in (also relative) confidence. But since the crypto winter of 2022, and especially since the arrival of Gary Gensler – current Chairman of the Securities and Exchange Commission (DRY) – things happened very severely full-bodied. Thus, the CEO of Ripple affirm that forced exile crypto players was only just getting started.
A crypto brain drain outside the United States
The relative confidence mentioned above was quickly replaced by a total regulatory uncertainty to USA. In this context, many crypto-companies have already left the floor or stopped their activities in the land of Uncle Sam – or, in the worst case, closed shop.
In a recent interview with CNBC, Brad Garlinghousethe CEO of Ripplereturns to this phenomenon mass exodus which seems to be starting in the United States. For the boss of the XRP issuing company, many jurisdictions are now more favorable to cryptocurrencies. Or at least do not include a mad regulator (the SEC) wanting to rule everything in the sector (without any real legitimacy to do so, for the moment in any case).
“I think it’s fair to say that the United States has made the rules of conduct for the crypto-asset industry as confusing as possible. The SEC has really been at the forefront of this confusion. (…) Europe has really shown leadership [dans le domaine de la réglementation crypto], and the same for countries like the United Arab Emirates (…) even the United Kingdom and Singapore: they provide clarity on how they will regulate these digital assets. »
Brad Garlinghouse, CEO of Ripple
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Even Ripple, although born in the USA, prefers to turn elsewhere
If the young people/small structures have a certain facility to escape from the open-air crypto prison that the United States is becoming, the biggest/oldest companies have to adapt to consider the future.
If we already know that the crypto-stock exchange Coinbase (based in California since 2012) will develop its offer to non-US residents since Bermuda, with Coinbase International Exchangethe Ripple company counts well do the same. Also founded in California in 2012, this American group will also turn outside of his country of origin.
“Frankly, that’s why you see the entrepreneurial spirit and the investments [cryptos] flock to other jurisdictions. (…) Unfortunately [cette guerre anti-crypto] encouraged companies like Ripple to invest more outside of the US. »
Brad Garlinghouse, CEO of Ripple
In fact, Ripple’s boss confides that already 95% of customers by Ripple are not US residents. Similarly, the majority of the group’s future job creations will be abroad. That said, we can very well understand Brad Garlinghouse, who is very scalded to see his company being forced to spend $200 million in legal fees because of his lawsuit with the SEC. The US regulator accuses him – without success – since December 2020 of having illegally issued what he considers to be a security: XRP.
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